From the Lira’s Collapse to the Beginning of Stabilization: Riad Salameh and Banque du Liban Enter a New Era

At the beginning of the 1990s, Lebanon entered a new economic phase after years of war and financial collapse. Despite renewed economic activity and GDP growth of 57% in 1991, public spending and debt continued to rise, while Banque du Liban’s ability to defend the lira weakened. In August 1992, the US dollar reached a record high of 2,775 Lebanese pounds. However, with the formation of Rafic Hariri’s government and the appointment of Riad Salameh as governor in 1993, a new phase of exchange-rate stabilization and renewed confidence in the banking sector began—a period that achieved monetary stability but also paved the way for expanding public debt and state financing.